FG Reacts To Proposed Hike In Fuel Price

FG Reacts To Proposed Hike In Fuel Price

FG Reacts To Proposed Hike In Fuel Price – The Federal government has rejected the demand to increase the pump price of petrol by considering the removal of price cap of N145/litre

Former Group Managing Directors of the Nigerian National Petroleum Corporation (NNPC) on Saturday had called for a review of current price of fuel, noting ”that the PMS price cap of N145/litre is not congruent with the liberalization policy especially with the Foreign Exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges etc remaining uncapped, a statement by the NNPC’S spokesman, Mr Garba Mohammed said.

Recall that the price cap had been set when the dollar exchange rate at the parallel market was less than 300 Naira, with the government saying the decision was to ensure that marketers do not sell petrol at their desired price.

Reacting to the proposal, the acting Executive Secretary the Petroleum Products Pricing Regulatory Agency (PPPRA), Sotonye Iyoyo, said that the agency would not accept the advice.

Mrs Iyoyo pointed out that the proposal was the personal opinion of the former Group Managing Directors of the NNPC.

“I am not aware that the government is planning any fuel price increase. We are in a liberalised market already,” she insisted.

On his part, the spokesman for the NNPC, Garba Mohammed, also described the advice, saying it was just an “opinion”.

The former Group Managing Directors of the NNPC also expressed concern over the declining production level of crude oil in Nigeria and its consequences on the environment and the nation’s revenue.

They fear that if the current situation is left unchecked, it could lead to the crippling of the NNPC and the nation’s oil and gas sector.

Nigeria’s crude oil production had dipped by 700,000 barrels per day (bpd) to 1.56 million bpd in the last few months due to attacks on oil installations in the Niger Delta region by militant group, Niger Delta Avengers.